THE 2017 BUDGET SPEECH

by
YAB DATO’ SRI MOHD NAJIB TUN HAJI ABDUL RAZAK
PRIME MINISTER AND MINISTER OF FINANCE

INTRODUCING THE SUPPLY BILL (2017)

DEWAN RAKYAT
FRIDAY, 21 OCTOBER 2016

“ENSURING UNITY AND ECONOMIC GROWTH,
INCLUSIVE PRUDENT SPENDING, WELLBEING OF THE RAKYAT”

Mr. Speaker Sir, I beg to move the Bill intituled “An Act to apply a sum from the Consolidated Fund for the service of the year 2017 and to appropriate that sum for the service of that year” be read a second time.

Mr. Speaker Sir, BismillahirRahmanirRahim Alhamdulillahi Rabbil A’lamin Wabihi Nasta’in. Praises be to Allah, for His blessings that we are gathered here today, 21 October 2016, for the tabling of the 2017 Budget.  Peace be upon Prophet Muhammad, the chosen messenger.

Dear Allah, the Best Planner, we pray for Your guidance and we seek for Your grace.

Mr. Speaker Sir,

We like to take this opportunity to welcome home the 23,000 Hajj pilgrims. May your Hajj be accepted by the All Mighty. InsyaAllah.

Mr. Speaker Sir,

Since the past six decades, many budgets have been tabled.

The first post-independence budget was presented in the parliament in 1959 with only a total allocation of RM888 million, while the current 2017 Budget stands at RM260.8 billion.

For the past 60 years, the Parti Perikatan and now, the Barisan Nasional Government has successfully sustained the GDP growth at an average of 6% per annum. Alhamdulillah…. Alhamdulillah,

Mr. Speaker Sir,

The 2017 Budget allocates a sum of RM260.8 billion, an increase of 3.4% from the 2016 Budget Recalibration.  Of which, RM214.8 billion is allocated for Operating Expenditure, while RM46 billion for Development Expenditure. This does not include contingencies which amounts to RM2 billion.

Under the Operating Expenditure, a total of RM77.4 billion is for Emolument and RM32 billion for Supplies and Services.

Meanwhile, a sum of RM103.9 billion is allocated for Fixed Charges and Grants. A sum of RM691 million is allocated for Purchase of Assets, while RM816.6 million for Other Expenditures.

Mr. Speaker Sir,

Under the Development Expenditure, the economic sector will receive the highest share of RM25.9 billion, followed by social sector with RM12.2 billion. The security sector will be allocated RM5.3 billion and the general administration more than RM2.5 billion.

The revenue collection in 2017 is expected to expand at around 3% to RM219.7 billion.

In addition, the Government is expected to achieve the fiscal deficit target of 3% of GDP in 2017, compared with 3.1% this year.

Mr. Speaker Sir, Ladies and Gentlemen… I understand that these figures and numbers may not be easily understood.

In reality, the Government is always committed to implement an optimum budget for rakyat through prudent spending even though we are faced with global economic uncertainties.

Ladies and gentlemen,

The definition of prudent spending by the Government is similar to a sensible father or head of family manages his finances to meet household needs.

In other words, if previously we could afford expensive toys, however, in the present situation we could continue to do so but within our means.

This is also applicable for food and dining where one is advised to spend in moderation according to ones need.

Furthermore, Malaysia is known as Food Haven.

For example, during the recent Independence Message, I had given examples of good food at a reasonable price such as the Nasi Kandar Vanggey in Ipoh.

I found out that a young female local graduate is selling Nasi Lemak Anak Dara in Shah Alam. It went viral that she was summoned…

Nevertheless, the Government encourages such individuals, especially graduates to venture into entrepreneurship and we pray for their success.

Mr. Speaker Sir,

In formulating the 2017 Budget, we have drawn learnings from the Surah Yusuf verses 43 to 49. As interpreted by the ulamas, one should plan and prepare during the first seven years, while facing the subsequent seven years of challenges in order to sustain economic resilience.

As a lesson learnt from the above historical event, about seven years ago, in 2008, Malaysia was also affected by the global economic slowdown.

Therefore, upon my appointment as the Minister of Finance, under the leadership of the former Prime Minister, Tun Abdullah Ahmad Badawi, we launched the First Economic Stimulus Package, amounting nearly RM7 billion to revitalise the economy.

The first stimulus package was just an interim measure. Subsequently in March 2009, a month after I took over the office as the Prime Minister, the Second Economic Stimulus Package of RM60 billion was implemented.

Clearly, this was a proactive measure to stimulate the slow economic growth at that time. As a result, the economy rebounded with GDP reaching 7.4% in 2010. …….

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